PARAPROFESSIONAL PAY SCHEDULE TRANSITION

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2 As a result of HB 1, the school start date has been pushed back to the last week in August beginning in District prorates salaries so that Paraprofessionals receive 26 equal payments throughout the year and do not go without a paycheck over holidays or the summer break 2

3 PRORATION EXAMPLE Instructional Assistant works 8 hours per day for 179 days (August 23 - June 4) at $9.18 per hour. The employee s standard gross earnings are calculated as follows. DAILY RATE $9.18 x 8 hours = $73.44 ANNUAL SALARY $73.44 x 179 days = $13, STANDARD GROSS PER PAY CHECK $13,145.76/26 pay periods = $

4 Paraprofessional employees are assigned to pay schedules that determine when the first check of the new school year begins The current pay schedule was established back in the 1990s when the school start date was much earlier Under the existing pay schedule the Instructional Assistant used in the previous example will receive their first check for the new school year on 8/10/07. Since the Instructional Assistant does not report back to work until August 23, and allowing for a two week payroll processing timeframe, the Instructional Assistant should receive their first check on 9/7/07. 4

5 With school starting August 27, adhering to the current pay schedule for paraprofessional staff will create a situation where the District will issue from one to three paychecks prior to the employee actually earning the pay There is a financial risk associated with these advanced payments 5

6 Value of Advanced Payments at the Beginning of the Year Work Schedule # of Employees Paychecks Ahead of Schedule Payroll Total 210* & 230 days & Castle Hills days $ 210, days & Academy of Creative Ed $ 1,544, & 205 days 35 3 $ 93,988 Total Advanced Payments $ 1,849,373 *Library Processing Specialist July Off 6

7 Salary Earned Vs. Prorated Example 179-day Paraprofessional Current Pay Schedule Salary $14, $12, $10, $8, $6, $4, $2, $- 8/10/2007 9/10/2007 Break Even Point (prorated=<earned) 10/10/ /10/ /10/2007 1/10/2008 2/10/2008 3/10/2008 Pay Dates 4/10/2008 5/10/2008 6/10/2008 7/10/2008 Earned Prorated 7

8 In order to eliminate advancing paychecks to employees, propose adjusting the pay schedule to coincide with the new work schedule. 8

9 PROPOSED PARAPROFESSIONAL PAY PLAN 9

10 PAY PLAN Adjust the pay schedule to coincide with the work schedule allowing for a normal two-week processing time between the end of the pay period and the issuance of the paycheck Paraprofessional employees will experience a lapse of 1 to 3 paychecks between the and school years, depending on their work schedule, due to the realignment of the pay schedule To help minimize the impact of the transition to employees, employees will be given three compensation options for the school year 10

11 OPTION #1 Spread paychecks for out over an extended timeframe. 11

12 Work Schedule # of Employees Lapse in Paychecks During Transition # of Extended Paychecks 210* & 230 days & Castle Hills days days & Academy of Creative Ed & 205 days *Library Processing Specialist July Off 12

13 Examples of impact to standard gross calculation using extended payment option. Work Schedule Number of Extended Paychecks Pay Grade C6 I1 C6 Hourly Rate Hrs Wrkd per Day Annual Salary 23, , , Prorated Stand Gross 26 Payperiods Prorated Stand Gross Ext Payperiods Diff in Standard Gross (33.76) (36.11) (93.72) 13

14 OPTION #2 Continue receiving 26 payments and allow employee to designate a specific savings amount for direct deposit to a bank or savings account of their choice. Employees will experience a lapse in paychecks between and , but can utilize their savings to help cover the transition period. 14

15 OPTION #3 Continue receiving 26 payments with no savings set aside. Employees will experience a lapse in paychecks between and

16 CONSIDERATIONS Employees will need to select an option according to the following deadlines. Work Schedule 230 days All others Selection Deadline June 14, 2007 June 28,

17 Employees will make their selection by accessing the NEISD Employee Portal using their internet browser Once their deadline has passed, employees will not be able to change their selection Employees who do not respond will default to Option 3 For mid-year change of assignments, honor the original selection as it applies to their new work schedule 17

18 BENEFIT DEDUCTION SCHEDULE (for those who stay on 26 paychecks) Work Schedule 210* & 230 days & Castle Hills days days & Academy of Creative Ed 198 & 205 days Lapse in Paychecks During Transition Date of Deduction Nov. 30, 2007 Nov. 30, 2007 May 30,2008 Nov. 30, 2007 May 30,2008 Last Paycheck *Library Processing Specialist July Off 18

19 COMMUNICATION PLAN Memo to Principals, Assistant Principals and Department Budget Managers Memo to paraprofessional staff Optional informational meetings May 21-May 24 7 meetings organized by cluster/grade level/work location Held after school/work hours 19

20 Article in May employee newsletter Employees will be reminded of selection deadlines through s and home mailouts Information will be posted to the District s Web site 20

21 Employees will begin their new pay schedule in At this point, the District can continue prorating salaries over 26 paychecks once the pay schedule transition is complete with very minimal financial risk. 21

22 Salary Earned Vs. Prorated Example 179-day Paraprofessional August 23-June 4 26 Payments Salary $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Break Even Point (prorated =< earned) Earned Prorated 9/7/07 10/19/07 11/30/07 1/11/08 2/22/08 4/4/08 5/16/08 6/27/08 8/8/08 Pay Dates 22

23 FUTURE CONSIDERATIONS Explore the possibility of converting paraprofessional compensation from a prorated basis to a direct hourly basis allowing District to seamlessly adapt to future calendar changes. 23

24 TRANSITION RECAP Adjust the pay schedule to correspond with the work schedule due to change in school calendar & to eliminate advanced payments Offer 3 Transition Options in Proration over extended paychecks Prorate over 26 paychecks with savings through direct deposit Prorate over 26 paychecks, no savings 24